Oil reserve levels and monitoring
The Minister said EEC rules require reserves equal to 90 days’ consumption and identified stocks held at Whiddy and overseas. Members pressed him on the reserves’ exact locations, accessibility in an emergency, and the accuracy and frequency of stock returns; he said new weekly, itemised reporting had begun.
asked the Minister for Industry, Commerce and Energy to give details of the oil reserves which this country is obliged to maintain by virtue of EEC regulations and the location of such reserves.
4.
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asked the Minister for Industry, Commerce and Energy if he has received complaints from the EEC Commission regarding the failure to observe the EEC requirements for oil reserves kept within the State.
5.
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asked the Minister for Industry, Commerce and Energy if he is satisfied that storage of oil by the State complies with the EEC requirements of the 90-day storage potential.
6.
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asked the Minister for Industry, Commerce and Energy if he will indicate the present stocks of petroleum supplies in this country and the procedures which apply between him and the oil companies in determining the available supplies.
7.
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asked the Minister for Industry, Commerce and Energy if he is satisfied with the present level of co-operation from the oil companies with particular regard to determining the levels of petroleum supplies and stocks held in Ireland.
Comment on this
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 3 to 7, inclusive, together.
This country is obliged under EEC directives to maintain stocks of crude oil and/or petroleum products corresponding to 90 days average daily internal consumption in the preceding calendar year. In calculating internal consumption, three categories of product are taken into account:
(a) motor spirit and aviation fuel,
(b) gas oil, diesel oil, kerosene and jet fuel of the kerosene type, and
(c) fuel oils.
Provisional figures collected by my Department show that, on 17 April 1979, the stocks of oil, calculated in accordance with the relevant EEC directives, amounted to 78, 69 and 93 days respectively in the three categories, representing about 83 days overall. Roughly 19 days supply is stored in other member states—the United Kingdom, France and Belgium—and the remaining stocks are stored in this country.
At present, weekly returns of stocks are made to my Department by the oil companies with checks carried out by officers authorised by me. For the purpose of complying with the directives crude oil stocks may be taken into account. It has been found, however, that the EEC system of converting crude oil to products on a national basis can be misleading and a more comprehensive and realistic reporting system is being introduced.
I have received no complaints from the EEC Commission regarding the failure to observe the EEC requirements for oil reserves kept within the State. It should be noted that the directives, which originally came into effect in 1971, permit the holding of stocks in other member states.
Comment on this
First of all, I want to ask a question about internal stocks. Has the Minister included the oil at the Whiddy Island terminal, and if so how much?
Comment on this
Part of the oil at Whiddy is included, as it has been for many years, in so far as the crude element in the stocks is concerned. The amount allocated in respect of Whiddy is 135,000 tons, which amounts to ten days supply.
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The second aspect relates to overseas stocks. Where exactly are these stocks and how accessible would they be in times of difficulties?
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It arises because of the accessibility to these stocks in times of crisis. Is the Minister not able to tell me exactly where the stocks are in those other countries?
Comment on this
I have not ascertained in precisely which tanks they are but the companies who own them know exactly where they are. If I had wanted to I could have asked, but I do not think it is of any great importance where exactly they are.
Comment on this
Is the Minister satisfied that he has received in the recent past full co-operation from the companies concerned in regard to their storage facilities and the grades stored, and has he taken more comprehensive measures or does he see the need for more comprehensive EEC measures in relation to stocks held by the companies? Does he see the need for that to be incorporated in his own surveillance?
Comment on this
As I mentioned in the reply, I do not find the EEC system for calculating these stocks satisfactory from our point of view because it includes what they term the converted value of crude, which would not be readily available in an emergency—it would have to be refined. That system is regarded by the EEC as sufficient for their purposes. In the past three weeks I have made arrangements for a much more regular return of stocks both at home and abroad.
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Does this mean more regular consultation with companies operating within our territory than heretofore?
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Is the Minister aware that Irish revenue and excise officers in the various depots throughout the country, including Whitegate, on a daily basis take stocks and are fully aware of the exact amounts in stock and that therefore the surprise and amazement expressed by the Minister some weeks ago as to what precisely the companies had and had not was, to say the least, a bit of special pleading on his part? Would the Minister not agree?
Comment on this
The Minister said that he had figures taken in regard to oil stocks in various categories for 17 April. Were these figures the ordinary weekly figures which he referred to in the next sentence or was that a separate check which he made himself?
Comment on this
But 17 April was Easter Tuesday, five days after the Minister took on the international oil companies.
Comment on this
Why was no check made three months earlier when the first warnings of oil shortage were being sounded?
Comment on this
Because I had no reason to believe at that time that the figures might not be accurate. Indeed, in fairness to the companies, although they were somewhat higher in respect of some areas, they were found in general to be in accordance with the figures supplied. The main difference was that in the past there was a relatively long gap in respect of the periods during which the returns were made.
Comment on this
Now that we are concerned with fairness to the companies, would the Minister tell us how he allowed a month or six weeks to go by between the first time when he made noises about multi-national companies holding us up to ransom and actually having a check made of what oil was in store in the country? He made this check five days after the order which was supposed to downface the companies for good.
Comment on this
The Minister referred to 19 days of our supply being held overseas and he referred in his reply to three countries. I did not hear what countries he referred to.
Comment on this
It is a matter for the companies concerned as to where exactly in those countries they want to keep it.
Comment on this
Would the Minister enlighten us on the arrangements to get the supplies here in the event of an emergency at present?